Saint Joseph Institute of Technology

Accountancy, Business and Management

Butuan City

A Paper Presented to the Faculty of

Senior High School - Main
Saint Joseph Institute of Technology
Butuan City

In Partial Fulfillment of the Requirements

Of Entrepreneurship Subject

By:

Escobido, Fe Maylen S.

September, 2021
Executive Summary

Loyaltea Milk Tea Creations is a starting sole

proprietorship business that will be located at the Door 1,

Ground Floor, Antolin Building, Tiano- Akut St., Cagayan de

Oro City. The location is within the city for it to be

accessible to all customers. It will offer refreshments and

light meals enough to aid a hungry stomach and to partner a

discourse with a friend or colleague. The cafe is also

offering free Wi-Fi and good ambiance to match its products

for their customers to feel at home and relaxed and make it

the perfect place to choose to chill. It aims to be one of

the preferred milk tea shops in the Philippines which

continuously providing better service by promoting good

customer relationship while retaining quality in the making

of the products.

Loyaltea Milk Tea Creations offers products and services

at a competitive price to meet the demand of the market. Its

startup operations will be financed by the capital investment

of the owner. The company tends to hire 1 store supervisor

and 4 crews. The said 4 crews will undergo trainings for job

shifting such as cashier, kitchen staff and server for good

customer service. The cafe will offer bestselling and trend

milk tea series flavors namely, Loyaltea Bubble, mango, thai,

strawberry, oreo, blueberry, honeydew, taro wintermelon, sea

salt caramel, and dark chocolate. They also have foods they

classified as short orders. It includes French fries

available in solo, mega, and tetra, Cheesy Beef Nachos and

fries, Cheesy beef burger, Chicken empanada, Chicken Nuggets,

Peanut, Rice Bowls (Beef and Mushrooms, Chicken Adobo and

Chicken Nuggets) and lastly Bubble waffle. The food and

beverages will be prepared in a considerable time, since

management also focuses on providing fast and quality service

to its customers, in a way that customer concerns are attended

to by the employees, long-lines or orders are minimized,

keeping the premises as clean as possible. With this, there

can be improved customer loyalty, word of mouth may be

encouraged, in addition to making customers feel more valued

which emphasizes good customer relationship.

Loyaltea Milk Tea Creations expects to have a profit in

its first year of operations but this won’t be too enormous

since the company is still expecting to recover the costs

incurred upon the startup of the operations of the

establishment. The company expect to have sales growth in the

coming years without changing the price of the products. It

caters to all of its customers by providing each customer

with products and services made to suit the customer, down to

the smallest detail.

 Acknowledgement

Finding and staying on the path through the world of

academe is quite a challenge. For their help in guiding the

proponent through this journey, we are indebted to the

Accountancy, Business and Management Strand of SJIT Senior

High School- Main, especially to their instructor, Celestine

Grace Escobido, for her unconditional support and guidance

who kept the doors in his office open for consultations from

time to time.

To their parents though sometimes they’ve encounter

problems, still the consent, encouragement and general

support never fails.

To their friends and respondents whose patience and

interests is accompanied with smiles during those stressful

situations.

And above all, the realization of this project is nothing

without the accordance of divine will from our Almighty

Father.

The proponents are always thankful to our God Father in

heaven who gives all the passion and good gifts, and the best

way to show their appreciation is to pursue whole-heartedly

their business by giving satisfaction and jobs to others. And

if they do, it will mark as the wonderful plans that our

Almighty Father involves.

 Table of Contents

Cover Page i
Executive Summary ii
Acknowledgement iv
Table of Contents v
Chapter 1: Business Overview
Introduction 1
Business Description 3
Mission 5
Vision 5
7S Model 5
Chapter II: Market Analysis
Target market 8
Demand 9
Competitors
Chapter III: Sales and Marketing Plan
The Products
Cost of Materials
Marketing Strategy
Chapter IV: Competitive Analysis
SWOT Analysis
Social Desirability
Chapter V: Management Plan
Human Resource
Organizational Structure
Chapter VI: Operating Plan
Ordering Process – Walk In
Ordering Process – Online
Chapter VII: Financial Plan
Sales Forecast
Statement of Financial Position
Statement of Financial Performance
Statement of Changes in Equity
Statement of Cash Flows
Appendices
 Chapter I
Business Overview

Introduction

Foods are never complete and satisfactory if it is not

complemented with drinks. Beverages, apart from water, relieves

one’s thirst no matter what season of the year it may be. For such

several reasons beverages evolved just as how time goes by. Thus,

food industries have made its way to cope with the ever changing

demand in the economy to all the products the world offers today.

However, apart from the commonly popular food industries, a

lot of cafes and beverage offering industries have made its way to

be recognized in the business world today. Some of these kind of

businesses initially offered only one type of beverage products

such as fruit juices, soft drinks, fruit shakes, coffee, teas, and

milk teas. But, as time goes by they have learned to develop and

look for ways to highly attract customers to survive and continue

in the business industry in the long run. They included foods and

pastries in compliment with the beverage products they offer in

order to cater the interest of those who are not fond of drinking

alone and are into with sweets, desserts or foods.

In the Philippines, a lot of cafes and coffee shops have

continuously emerged and eventually become rampant. Just as how

most Filipinos love coffees and spend time in coffee shops, milk

tea on the other hand has also become popular especially among

teenagers. Hence, several café businesses have made its way in the

business realm. Similar to the coffee shop entities, cafes are open

and are providing facilities for people like students who love to

make their tasks outside, apart from their home, or those

professionals who are meeting people for negotiations and even

hanging out with friends.

 Entities of different industries in the Philippines,

including the cafes and coffee shops, are coping up with the ever

changing demand as well to improve its profitability where in fact,

a lot are expanding and widening up their market by going

international. First, they do expansion in the market by offering

additional products or directly open another branch in different

market and location. With such strategy of development, it enables

businesses to compete with other entities of the same industry as

they are reaching and catering a wider range of the market.

Expansion, in a wider sense, accordingly is a natural process

of a successful company. However, in the case of café businesses,

as the products they offer are not the basic needs of everyone,

this is somehow challenging for them. Since for some individual

milk teas are new to them, they prefer to no longer try to know

what is it and how does it taste.

As the popularity of beverage industries arose particularly

of the product milk tea, this has also been true in Cagayan de Oro

City. A number of establishments have become popular as well to

have catered the needs, wants and the crave of people who have

become fond of the said drink. Therefore, to be in the said industry

catering the said market requires a thorough study, understanding

and analysis of the market behavior to respond and cope up with

the business’ objective of profit maximization through development

and thus to success.

As a result, the proponents created a business plan to: (1)

analyze the marketability of the product in the proposed area and,

(2) evaluate its profitability in the said location by making a

cost-benefit analysis using the different capital budgeting

techniques (3) conclude if the said business is feasible or not.

Business Description

 Business Name

The business name is Loyaltea Milktea

Creations. This will establish to sell

refreshments and light meals enough to

aid a hungry stomach and to partner a

discourse with a friend or colleague.

Loyaltea's target market are students

and professionals where it aims to serve

the best and cater their target markets’

needs where the facilities could be at

its best condition as possible.

 Business Location

The new location of the business

will be at the Door 1, Ground Floor,

Antolin Building, Tiano- Akut St.,

Cagayan de Oro City. This area aims to

attract customers from schools and

working places around the area making

 it susceptible for a wider range and

various market not just students but

also from different areas and field

within the said vicinity.

 Business Logo

 Product Description

The Loyaltea café’s will offer

the same milk and fruit tea, food and

dessert products the business’

currently offering to the market

today. For milk tea series there are

eleven (11) flavors offered namely,

Loyaltea Bubble, mango, thai,

strawberry, oreo, blueberry, honeydew,

taro wintermelon, sea salt caramel,

and dark chocolate. For fruit tea

series as well, there are eleven

variants such as, green apple,

blueberry, strawberry, passionfruit,

mango, grape, kiwi, lychee,

watermelon, lemon and honeydew. They

also have yakult mixes available in

the same variants with the Fruit teas.

 Another is the variants of milk tea

including caramel, mocha coffee,

Okinawa, matcha, hokaido, hazelnut,

cappuccino and dark choco.

Additionally, they have this Rock Salt

and Cheese series that comes in 8

different flavors which are basically

milk teas with rock salt and cheese.

Lastly, there are Fresh brewed tea and

Cream cheese series both in jasmine

green and black assam, classic, dark

choco, matcha, oreo and taro.

Apart from beverages they also

have foods they classified as short

orders. It includes French fries

available in solo, mega, and tetra,

Cheesy Beef Nachos and fries, Cheesy

beef burger, Chicken empanada, Chicken

Nuggets, Peanut, Rice Bowls (Beef and

Mushrooms, Chicken Adobo and Chicken

Nuggets) and lastly Bubble waffle.

Mission

Loyaltea Milktea Creations’ mission is to provide

best milk tea drinking experience with the highest-

quality products, friendliest staff and best value

that would leave customers satisfied and looking

forward to more.
Vision

By 2030, Loyaltea Milk tea Creations’ will be

one of the preferred milk tea shops in the

Philippines. Continuously providing better service by

promoting customer relationship while retaining

quality in the making of the products.

7S Model

 Strategy

 Travelled to different milk tea shops

inside and outside the country.

 Became knowledgeable of the exact

taste they want to achieve. Ensuring

not to compromise the quality of

their milk tea.

 They have loyalty cards, they offer

one free milk tea of any preferred

mixture after the 10th tea purchase.

 They will offer holiday promos.

 Structure

 The owner will give the employees the

freedom to choose where they wanted to

be assigned.

 Systems

 They have set standards on how to do

their task and all the work needed to

be done.

 Guidelines and procedures will be

strictly implemented to meet the set

 objectives.

 Staffs

 Employees will be hired through the

recommendations of employees and

interviews with the owner.

 Trainings are done and are accessible to

all employees so everyone can learn and

knowledgeable to every task.

 Style

 Their supervisor will be participative and

hands-on, making his/her leadership

effective.

 Skills

 Known for quality service as well as

customer service.

 Shared Values

Values Practice

Manifestin

g Values

Honesty Perform

 Free of task with

deceit and integrity,

untruthfulnes honesty

s in and

performing genuinely.

work.

Hospitable Serves the

 Committed to guest with

 serve its grace and

customers courtesy

with as honored

enthusiasm. guests.

Teamwork Supporting

 Coordinate each other

with each with the

other to work belief

efficiently that they

and work best

effectively. when they

work

together.
 Chapter II

Market Analysis

The purpose of this chapter is to identify the

company’s primary target market in order to make a

strategic estimations as to how the product or

services will be delivered to its customers.

Target Market

Loyaltea Milk Tea Creations considers both the

students of Pilgrim Christian College, professionals

and residents of 20 Barangays within the 1 kilometer

radius requirement as their target market.

Herein presented is the total population of PCC

students (S.Y. 2019-2020) inclusive of college

enrolled in 3 programs and the total population of 20

Barangays.

College Students 950

20 Barangays 25,877

Total Population 26,827

With the data presented, the proponents have

computed the sample size needed to answer the survey

questionnaire using the Slovin’s formula.

 Application given:

N =26,827

E = 5%

n= 26, 827

1+[(26,827)(.05)2]

= 26,827

68.0675

n= 379 respondents

Considering the inherent limitations, unforeseen

circumstances and the conflicting schedules, the

prononents have decided to distribute the survey

questionnaires in a convenient way by proportionating

the three hundred seventy nine (379) respondents into

70% PCC students and 30% outside respondents

respectively. This discretion resulted to

distribution of two hundred seventy-nine (265) survey

questionnaires to PCC respondents and one hundred

nineteen (114) survey questionnaires to outside

respondents. 379x70%= 265 respondents - PCC 398x30%=

114 respondents – Barangay

Demand

The demand of Loyaltea Milk Tea Creations is

reached after a thorough analysis of the data

extracted from the survey conducted. In order to

effectively assess the entity and its products' demand

in the proposed area, the consultants have purposely

placed the most important question pertaining to the

market's willingness to avail the entity's products

given the possibility of opening a new Milk Tea Café

in the Antolin Building, in the last part of the

questionnaire. This is to ensure a reasonable and

independent judgment from the respondents, adding more

strength and reliability to the data gathered.

Figure 1: Age Demography

 The respondents with an age ranging from 14

to 20 years old cover 69% of the three hundred

seventy nine (379) total number of the sample

population which is approximately to two

hundred sixty one (261) respondents. The

remaining 31% which is equivalent to one

hundred seventeen (117) represent the 13 &

below, 21 to 30, 31 to 40, and 41 year old &

above respondents of this study. This likely

proves that the marketability of the entity’s

product depends mostly on these ranges,

classified as teenagers and mostly students of

Senior High and College.

It shows the gender of the total sample

population. Majority of the respondents are

female representing the 68% of the total sample

population and 32% representing

the male population.

 Figure 3: Monthly Income or Allowances

The figure shows that 56% of the respondents

population have 1000 pesos and below and the 24% of

the respondents population have 2000-5000 pesos

monthly income or allowance.

Figure 4: Preferred
Figure 4 shows that 74% or two hundred eighty

(280) respondents prefer Milk tea while 18% or sixty

eight (68) prefer coffee and the remaining 8% prefer

softdrinks and other beverages. With this difference,

it can be determined that there is a huge demand of

Milk Tea.
The Competitors

Figure 5: Direct Competitors

Figure 5 shows the result of the survey on which

direct competitor the respondents usually buy Milk

Tea. Out of the three hundred ninety-eight (379)

respondents, 47% or one hundred seventy eight (178)

answered that they usually buy Milk Tea from Sweet

Leaf, 16% or sixty (60) respondents buy from

Chingkeetea, 12% or fourty- five (45) respondents buy

from Infinitea, 12% or fourty-five (48) respondents

buy from Chatime while Goncha and Tokyo Bubble Tea

comprise 13% of the total respondents with twenty-

eight (25) and twenty- four (24) respondents,

respectively. This shows that among the direct

competitors of Loyaltea, Sweet Leaf has the highest

market share.
 Chapter III
Sales and Marketing Plan

The purpose of this chapter is to present the

products and the company’s strategies on how to sell

the products and services they are offering to their

target market.

Product Offered

A. The Menu

The preceding table shows the menu and their

corresponding prices.
Cost of Equipment Needed

The preceding table shows the materials needed

for the day-to day operation of the Loyaltea Milk Tea

and their corresponding prices.

Marketing Strategy

A marketing strategy is the comprehensive plan

formulated particularly for achieving the marketing

objectives of an organization. It helps an

organization concentrate its scarce resources on the

best possible opportunities so as to increase the

sales. For Loyaltea, offering food products that are

trendy, and that which fit the taste and preferences

of most people is already a competitive advantage.

The following are some of the marketing strategies of

the business:

 A strategy kept in mind by the management

itself to put up an establishment or

branch as close to schools, offices or to

 other populated areas as possible. Here,

the business can bring in new customers or

get the existing customers to buy more

often and to increase its market value.

 The management also focuses on providing

fast and quality service to its customers,

in a way that customer concerns are

attended to by the employees, long-lines

or orders are minimized, keeping the

premises as clean as possible. With this,

there can be improved customer loyalty,

word of mouth may be encouraged, in

addition to making customers feel more

valued which emphasizes good customer

relationship.

 As soon as the milk tea cafe will commence

its operation, flyers will be distributed

to by-passers, containing information

about the business, its product offerings,

prices, perks provided by the business and

etc.

 Loyaltea is still a prospective business.

Hence, the potential to expand its

products and develop as a whole is still

strong. The good thing is that the

management is open and willing to innovate

and try something new not only for their

business but more importantly for the

satisfaction of its customers. So in order

to establish a better brand, and to ensure

that the business is up to date, fresh,

and new, the management is looking for

ways to improve not only their services,

facilities, but also the products that

they offer.
 Chapter IV
Competitive Analysis

Strengths

 The location is near the target market such as

students of PCC, employees and the residents

around the area.

 The shop offers good quality products for an

affordable price.

 Service time is faster compared to other cafés.

 High quality facilities and interior design.

A. Interior Design and the Furniture

and Fixtures
Weaknesses

 The shop has limited space.

 Ingredients from the suppliers is sometimes

delayed.

Opportunities

 Business Expo in Metro Manila enables the

business to advertise their product to a large

market and enable for the manager to explore new

products which might be a great help for the

business

 Innovation of products.

 Expansion of place.

Threats

 Competition in the market but different mixes.

 Spacious facilities/stores of their competitors

that can accommodate more customers.

Social Desirability

Loyaltea Milk Tea Creations embraces its

obligation to serve the community, focus on the well-

being of their employees and do the part of preserving

and protecting the environment. As part of serving

the community each year the partners will select one

primary charity to support. The partners will form a

group that is committed to provide holistic assistance

to communities effected by natural disaster. The

employees will have their internal trainings in order

to create a motivated, skilled and effective workforce

through which organization goals are achieved. They

will have team building exercises in order to

strengthen their relationship and encourage them to

build relationships with people they would not

normally meet. Loyaltea Milk Tea Creation is committed

in preserving and protecting the environment. The

business will no longer provide plastic straws instead

it uses paper straws and encourage the customers to

bring their own metallic or glass straws to lessen

plastic wastes. Each year, Loyaltea Milk Tea will team

up with government or nongovernment organization

activities to conduct a tree planting activity and

land based clean-up drives in order to help enhance

the environment.

Being socially responsible creates a goodwill and

a positive image for the business. This is to attract

customers, retain employees and improve expenses. It

adds significant value to the business and if the

program is well designed and planned, the benefits

far outweigh the costs.

 Chapter V

The Management

This chapter supplies the information that

is needed in the proposed business structure,

the management organization and its

responsibilities.

Human Resource

Below are the job position, job description and

qualifications of resource person needed by the entity

in the opening of Loyaltea Milk Tea Creations, that

will man the store for its day-to-day transactions.

Position with job description and qualification:

A. Crew

 Job description

1. Ensures the cleanliness of the

premises, before, during and after

store hours

2. Inspects the availability and

completeness of every product’s

ingredients

3. Maintain a fast service in making

the products, especially, during

rush times

 Qualifications

1. Can be male or female

 2. 18 years old and above

3. At least High School graduate

4. May be with or without working

experience

5. Must be hardworking and have the

willingness to learn and be trained

6. Must have a good moral character and

knows how to deal with customers

 Benefits

1. SSS

2. Pag-ibig

3. Philhealth

B. Cashier

 Job description

1. Ensure that customers are well assisted

and that customer orders are noted or

recorded with accurate specifications.

2. Resolve customer complaints, guide them

and provide them with relevant

information.

3. Responsible for cash collections and

issuing of receipts

 Qualifications

1. Can be male or female

2. 18 years old and above

3. At least High School graduate

4. May be with or without working

 experience

5. Must have the willingness to learn and

be trained

6. Must have a pleasing personality

7. Must have good communication skills

and customer relation skills

8. Must be responsible and trustworthy

 Benefits

1. SSS

2. Pag-ibig

3. Philhealth

C. Store Supervisor

 Job description

1. Responsible for checking or inspecting

materials or ingredients when stocks

are low and report directly to

management

2. Oversee the work performance and

relationship of its staff members

3. Ensure that the store is operating

smoothly at all times, and check

whether the objectives of the store

are met

 Qualifications

1. Preferably, College degree holder

2. At least 21 years old

 3. Can be male or female

4. With good communication skills

5. With work experience related to sales

6. Must be responsible, especially in

handling finances

7. Must be trustworthy and have a good

moral character

 Benefits

1. SSS

2. Pag-ibig

3. Philhealth

Organizational Structure

Store Owner

Supervisor

Cashier Crew Crew Crew

 Chapter VII
Operating Plan

This chapter describes how Loyaltea Milk Tea

creations operates.

The store’s operating hour starts at 8 am to 10pm. The

following are the steps on how to order online and walk-in.

A. Ordering Process – Walk In

Step 1: The crew will give the menu to the customer

and will list all their orders (with a copy stab) then

he will give them a slip containing the password of

Wi-Fi to keep them entertained while waiting.

Step 2: The crew will give the list of orders to the

kitchen crew.

Step 3: The crew will give the copy to the cashier

containing the list of orders.

Step 4: The crew will serve the orders with its

invoice receipt in the cash basket.

Step 5: The crew will collect the payment and give it

to the cashier.

B. Ordering Online

Step 1: Download the Loyaltea App.

Step 2: Fill out the necessary information.

Step 3: Select your favorite milk tea.

Step 4: Wait for order confirmation and select your

desired payment option.

Step 5: The delivery personnel will contact you.

 Chapter VII
Financial Plan

This chapter pertains the financial statements of

Loyaltea Milk Tea creations.
Appendices